CAIRO: The UAE will provide Egypt with petroleum products worth $8.7 billion over a year starting in September, an Egyptian official told Reuters on Sunday.
Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands, which have resulted in daily electricity cuts around the country of 86 million people.
Oil-producing Gulf countries have come to Egypt's aid since the army, prompted by mass protests, ousted President Mohamed Mursi last year.
"We will complete all the details this week and the first shipment will be sent next week," the official said, referring to the UAE agreement.
He said some of the petroleum products would comes as grants and the remainder under a credit agreement that would be repaid in installments.
The UAE, Saudi Arabia and Kuwait have together provided Egypt with more tan $20 billion in grants, loans and petroleum products.
Fuel subsidies have in recent years cost Egypt's government around $15 billion a year, a fifth of the state budget. But the government slashed energy subsidies and increased prices by more than 70 percent in July.
"Egypt imports petroleum products worth around $1 billion to $1.3 billion a month," the official said.
Meanwhile, Egypt's foreign reserves in August stayed close to their July level of $16.736 billion, the country's central bank Gov. Hisham Ramez told Reuters on Sunday.
"The foreign reserves are stable at the same level as the month of July almost," Ramez said over the phone, without giving a new figure.
Reserves levels stood at $36 billion before the 2011 uprising.
UAE to provide Egypt with $8.7bn petroleum products
